HB 3963

relating to an early childhood integrated data system.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Subtitle B, Title 3, Human Resources Code, is
amended by adding Chapter 74 to read as follows:
CHAPTER 74.  EARLY CHILDHOOD INTEGRATED DATA SYSTEM
Sec. 74.0001.  DEFINITIONS.  In this chapter:
(1)  "Cooperating entity" means the:
(A)  Children's Learning Institute at The
University of Texas Health Science Center at Houston;
(B)  Department of Family and Protective
(C)  Health and Human Services Commission;
(E)  Texas Workforce Commission; and
(F)  Texas Head Start State Collaboration Office.
(2)  "Early childhood interagency workgroup" means the
workgroup that promotes collaboration across state agencies
serving families with young children and that consists of
representatives from the following state agencies:
(A)  Department of Family and Protective
(B)  Department of State Health Services;
(C)  Health and Human Services Commission;
(D)  Texas Education Agency; and
(E)  Texas Workforce Commission.
(3)  "Lead agency" means the state agency designated
(4)  "System" means the early childhood integrated data
system established under this subchapter.
Sec. 74.0002.  INITIAL DEVELOPMENT OF EARLY CHILDHOOD
INTEGRATED DATA SYSTEM.  (a)  Subject to Section 74.0004(1), the
early childhood interagency workgroup shall develop the early
childhood integrated data system for the purpose of facilitating
and strengthening the sharing of data from early childhood programs
(1)  better inform policy related to those programs at
(2)  guide improvements to those programs that support
this state's early childhood goals and priorities and provide
better outcomes for children and families in this state.
(b)  The system must be developed in a manner that:
(1)  allows for the integration of existing state and
federal data systems that are accessible to the cooperating
agencies and that contain data derived from early childhood
services and programs that serve families with children from birth
through eight years of age, including data related to outcomes
under those services and programs;
(2)  allows for the identification of and reporting on:
(A)  specific outcome measures using aggregated
data that does not contain any identifying information, to the
extent state or federal law, as applicable, expressly authorizes
(B)  gaps in services and underserved
(C)  opportunities to align services and
(D)  coordination needs across services and
(3)  complies with state and federal laws relating to
privacy, cybersecurity, and data collection, including rules
establishing procedures to ensure that there is no unauthorized
duplication or removal of confidential information.
(c)  Data other than that described by Subsection (b)(1) may
not be collected for purposes of the system.
Sec. 74.0003.  DESIGNATION OF LEAD AGENCY.  During the
initial development of the system under Section 74.0002, the early
childhood interagency workgroup shall designate from among the
state entities listed in Sections 74.0001(1)(A) through (E) one
entity to act as the lead agency for the system.
Sec. 74.0004.  LEAD AGENCY DUTIES.  The lead agency shall:
(1)  complete the development of the system initially
developed under Section 74.0002 in a manner consistent with the
(2)  implement and maintain the system with assistance
from the early childhood interagency workgroup;
(3)  provide staff to operate the system; and
(4)  using system data, conduct data matching using a
protocol approved by the cooperating entities.
Sec. 74.0005.  COOPERATING ENTITIES.  (a)  The lead agency
and each cooperating entity shall enter into a memorandum of
understanding regarding the sharing of data for purposes of the
system.  The memorandum of understanding must specify the data to be
shared consistent with Sections 74.0002(b)(1) and (c) and the
frequency and manner of that data sharing.
(b)  Each cooperating entity shall participate in the system
and share data for purposes of the system as required by the
Sec. 74.0006.  REPORTING REQUIREMENTS.  (a)  Not later than
January 1 of each year, the early childhood interagency workgroup
shall submit to the legislature a report on the workgroup's, lead
agency's, and cooperating entities' progress in developing,
establishing, and operating the system.
(b)  The initial report required by Subsection (a) must
(1)  the state entity the early childhood interagency
workgroup designated to act as the lead agency;
(2)  an interagency data governance plan that includes:
(A)  objectives relevant to the system and a
framework for achieving those objectives;
(B)  the roles and responsibilities of all state
entities involved in establishing and maintaining the system; and
(C)  documentation of relevant state and federal
privacy, cybersecurity, and data collection laws, including rules;
(3)  a standardized process for updating the memorandum
of understanding into which the cooperating entities entered under
(4)  a design plan that focuses on:
(A)  data security, storage, retention,
management, processing, transportation, and analytics and other
(B)  roles and responsibilities of relevant state
entity personnel regarding data integration; and
(5)  information on the status of:
(A)  hiring project management full-time
(B)  grant funding applied for and grant funding
(C)  the development of an Internet website that
includes a preliminary, publicly available consumer data
(c)  Each report required by Subsection (a) following the
(1)  updates to the information required by Subsections
(2)  an overview on business use cases the system can
(3)  information on the development of analytic tools
based on the business use cases described by Subdivision (2).
Sec. 74.0007.  FUNDING.  (a)  The early childhood
interagency workgroup, the cooperating entities, and the lead
agency may use any available state or federal money to develop the
(b)  The lead agency shall actively pursue grants or other
money available from the federal government to operate the system.
SECTION 2.  Not later than January 1, 2026, the early
childhood interagency workgroup shall:
(1)  designate the lead agency for the early childhood
integrated data system as required by Section 74.0003, Human
Resources Code, as added by this Act; and
(2)  submit to the legislature the initial report
required by Section 74.0006, Human Resources Code, as added by this
SECTION 3.  If before implementing any provision of this Act
a state agency determines that a waiver or authorization from a
federal agency is necessary for implementation of that provision,
the agency affected by the provision shall request the waiver or
authorization and may delay implementing that provision until the
waiver or authorization is granted.
SECTION 4.  This Act takes effect September 1, 2025.